Catch 62


Q. I retired from CSRS in 2006 . I am retired from the Navy Reserves. I also draw a 60 percent disability from the Veterans Administration. I also am eligible for Social Security retirement when I turn 62 in September. I had six years of active Navy duty which I paid back to Civil Service. These six years of active duty were also used toward my Navy reserve retirement. I have Survivor Benefit monies taken out of my  Navy Reserve and CSRS retirement money. My wife receives a disability retirement from the state of Maryland and she will be eligible for Social Security retirement in two years.
How will “Catch 62″ and the windfall elimination provision affect my retirements ?

A. You won’t be affected by”catch 62,” which reduces the CSRS benefit of anyone who gets credit for his active-duty service and hasn’t made a deposit. This reduction occurs only if that employee 1) retires before age 62 and is eligible for a Social Security benefit at age 62 or 2) at retirement if he retires at age 62 or later. Any employee who is receiving an annuity from a retirement system where he didn’t pay Social Security taxes, such as CSRS, will have his Social Security benefit reduced if he has fewer than 30 years of substantial earnings under Social Security.


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